08.01.08
Posted in Financial Services, Mutual Funds, Offshore Services, Seychelles legislation at 8:59 pm by Robert Klien
The Central Bank of Seychelles has recently announced that Seychelles’ Mutual Fund Act has been updated. To build on the success of the financial services industry, Mutual Fund Act has been redrafted in order to plug gaps in the previous mutual funds legislation as well as to allow local financial service providers to tap into the multi-trillion dollar offshore mutual funds industry.
The redraft has been undertaken with a view to enable companies working in the financial services sector to offer services to mutual funds investors, which combine the assets of many investors in order to create larger funds for investment in stock exchanges and money markets as well as other investment opportunities.
The original legislation came into force in 1997. This was the beginning of mutual funds development.
The global mutual funds industry was estimated to be worth USD 26.2 trillion by the end of 2007. The industry has surpassed any other offshore business structure. It is growing at an average of 1 trillion USD per year.
It is also worth noting that the newly drafted legislation is aimed at bolstering banking and legal services for mutual fund operations.
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01.16.08
Posted in SIBA, Seychelles IBC, Seychelles legislation, Seychelles offshore jurisdiction at 11:18 am by Robert Klien
On December 17, 2007, the Seychelles International Business Authority (SIBA) published a document entitled International Business Companies (Amendment of Schedule) Regulations, 2007. The above-mentioned document was signed by the Minister of Finance.
What the document does is simplifying the fees related to Seychelles offshore company registration (Schedule 1 of INTERNATIONAL BUSINESS COMPANIES ACT, 1994).
The amendments are as follows:
previously:
(a) $100 upon the registration by the Registrar of a company incorporated under this Act the authorised capital of which is $5,000 or less;
now:
(a) $100 upon the registration by the Registrar of a company incorporated under this Act;
previously:
(e) $500 upon the registration by the Registrar of articles of merger or consolidation, but $700 in the case of articles of merger or consolidation that also constitute the Memorandum of a company the authorised capital of which, exceeds $50,000 or that amend the Memorandum of a surviving company to increase the authorised capital from $50,000 or less to more than $50,000;
now:
(e) $500 upon the registration by the Registrar of articles of merger or consolidation;
previously:
(f) $500 upon the registration by the Registrar of articles of arrangement, but $700 in the case of articles of arrangement that also constitute the Memorandum of a company the authorised capital of which exceeds $50,000 or that amend the Memorandum of a company to increase the authorised capital from $50,000 or less to more than $50,000;
now:
(f) $500 upon the registration by the Registrar of articles of arrangement;
previously:
(g) (i) $100 upon the submission to the Registrar of articles of continuation for a company the authorised capital of which does not exceed $5,000;
now:
(g) $100 upon the submission to the Registrar of articles of continuation.
As regards annual fees, there is the following amendment:
Instead of fees divided according to the authorised capital:
(2) A company the name of which is on the Register on 31st December in any year shall, before the date of the relevant anniversary of its incorporation under the Act pay to the Registrar an annual licence fee as follows -
(a) $100 if its authorised capital does not exceed $5,000;
(b) $300 if its authorised capital does not exceed $50,000 and its shares have a par value;
(c) $1,000 if its authorised capital exceeds $50,000; and
(d) $350 if its authorised capital does not exceed $50,000 and some or all of its shares have no par value
now the fee $100 is to be paid:
(2) A company the name of which is on the Register on 31st December in any year shall, before the date of the relevant anniversary of its incorporation under the Act pay to the Registrar an annual licence fee of $100.â€
he above-mentioned document named “International Business Companies (Amendment of Schedule) Regulations, 2007†was signed by the Minister of Finance Danny Faure on October 12, 2007.
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12.05.07
Posted in Seychelles CSL, Seychelles IBC, Seychelles legislation, Seychelles offshore jurisdiction at 1:27 pm by Robert Klien
Recently the Seychelles International Business Authority (SIBA) has informed about proposed amendments in Seychelles offshore legislation. It is expected that Seychelles IBC Act and CSL Act will be amended, but Seychelles Mutual Fund Act 1997 will be replaced by new Mutual Fund Act.
The SIBA has stated that Seychelles is experiencing a surge in its international business level, and, according to it, in 2006 Seychelles recorded another important increase in its International Business Companies (IBCs) registration. The jurisdiction registered a record number of new companies being formed in 2006 – 8237 companies. This number represents a 16% increase over the year 2005. The total amount of companies on SIBA register as at December 2006 was 33161 companies. The SIBA noted that the above-mentioned results make Seychelles, perhaps one of the most favoured offshore jurisdictions in the world.
In order to maintain the continuous growth and to adopt the country in the competitive environment, Seychelles has proposed amendments to the existing legislation. According to the SIBA, the amendments will align the jurisdiction with such well-regulated jurisdictions as the BVI, the Cayman Islands and Jersey.
The proposed amendments published by the Seychelles International Business Authority are proposed amendments to the IBC Act, proposed amendments to the Seychelles Special Licences Companies Act, and proposed new Mutual Fund Act.
The proposed amendments rare expected to improve the existing legislation as to allow Seychelles to remain at the forefront of the developing offshore industry. And, as far as Seychelles’ offshore industry growth is going on, we should expect to hear a lot more about Seychelles as an offshore centre in the near future.
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09.14.07
Posted in Seychelles government, Seychelles legislation at 3:12 pm by Robert Klien
President James Michel recently said that Seychelles law is being amended in order to allow to seize the assets of suspected drug traffickers.
Having marked one year in office, the President said that Seychelles has experienced significant growth during the year, however, there has also been an increase in substance abuse among the county’s population.
So, President Michel emphasized the necessity “to tackle the problem caused by those who are importing drugsâ€. According to him, certain laws are being amended in order to impound the assets of people dealing with drug trafficking.
The President said that apart from this problem, things have gone well for the country with the level of growth of 5.3%, which is an increase of 1.2% from the previous year. He also shared the expectations of 7.5% growth this year.
It is important that the President of Seychelles has raised the question of dealing with drug traffickers as drug trafficking goes hand-in-hand with money laundering, which might harm the reputation of Seychelles as a respectable offshore centre.
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06.05.07
Posted in Seychelles legislation, Seychelles offshore jurisdiction at 10:51 am by Robert Klien
It is being proposed to establish a body corporate responsible for the administration of laws related to non-bank financial services. The Bill seeking to have a Non-bank Financial Services Authority was published in Official Gazette on April 23, 2007.
In accordance with the Bill, the Authority will initially perform the functions designated in the Mutual Funds Act, 1997; the Insurance Act, 1994 and the Securities Industry Act, 1995. It will consist of:
- the Governor of the Central Bank,
- the principal secretary in the Ministry of Finance,
- the Attorney-General,
- a managing director,
- 3 members from the private sector,
- a member nominated by the Minister for Finance and appointed by the President.
The execution of the policy and the everyday management of the business of the Authority will be responsibilities of the managing director.
The Authority may set up committees in order to advise it on specific matters, as well as establish departments in order to efficiently discharge its functions.
The Authority’s objectives will be the following:
- to monitor, supervise and coordinate the conduct of non-bank financial services;
- to formulate appropriate national policies and advise the government on the regulation of non-bank financial services;
- to promote and develop Seychelles as a centre for the provision of non-bank financial services;
- to protect and enhance the reputation of Seychelles as an international financial services centre.
Within 60 days after the end of a financial year, the Authority shall submit a report on performing its functions during that to the Minister for Finance. The Minister shall have the report be tabled in the National Assembly.
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